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Buffett's Buying in a Big Way. That's Good.


On the heels of an ugly day, what could be more bullish than a giant acquisition of a financial company, a pure play on the bond market, by

Berkshire Hathaway


? Wow, this one will be awfully hard for bond and stock bears to swallow.

If all stocks are expensive, how could

Warren Buffett

pay this kind of premium for

General Re

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? If bonds are expensive, how could Buffett buy a huge bond owner? If insurance stocks are deflationary plays, how can Buffett buy GenRe unless he believes in the long-term deflationary scenario?

I am sure there is a way to paint this one as negative for the market that I haven't thought of, but I regarded it as a massive positive stunner -- the type of news that caused me to scramble to see if I could get more exposure out of stocks by exercising calls that I might have left to go out worthless.

Days like today, so driven as they are by expiration shenanigans,


rebalancings and

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rebalancings, usually leave me clueless. I know I would like to read something into the fact that there were many more sell imbalances than buy imbalances at the close, but that's never made me a dime. I also know it was difficult to sort out the


strength with the S&P's weakness.

But Buffett's move is unequivocally bullish and because it involves his own worth, I found it reassuring, given my belief that things simply aren't that bad out there and that we are at the lower end of a trading range that will hold.

I will be redoing my


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piece for newbies tomorrow but will be taking a Father's Day break to see what the girls got me. I know my youngest kept telling me all week that there is a closet I should stay away from till Sunday. So I have my fingers crossed!!!

James J. Cramer is manager of a hedge fund and co-chairman of

Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column by sending a letter to at